Yellen feeding the Doves
Dollar weakens on Yellen’s dovish comments; EURUSD hits 5-month high.
Dollar weakens on Yellen’s dovish comments; EURUSD hits 5-month high.
Sterling crumbles on fear of Brexit, poor data and dollar strength.
Four central banks announced their monetary policies last week.
Reserve Bank of New Zealand (RBNZ) took the market by surprise last week; slashing interest rates by 25 basis points to a record low of 2.25%.
The Reserve Bank of Australia (RBA) kept rates unchanged in their latest announcement.
The Sterling made headlines last week, plunging to its 7-year low on fear of “Brexit”.
The Cable opened the week with a 130+ pips gap lower than last Friday’s closing price.
“The Good” – Gold has rode on the weakness of the Greenback, it rose more than 15% since the beginning of 2016.
Last Friday, Bank of Japan became the first Central Bank in Asia (third among the G-10 countries after Switzerland and Sweden) to adopt negative interest rate, slashing their interest rate to -0.1%.
Oil and equity markets have been the talk of the town since the beginning of 2016.